Qin, Cheng-Zhong; Shengping, zsp@gsm.pku.edu.cn; Zhu, Dandan - Department of Economics, University of California-Santa … - 2009
This paper considers a model of endogenous bilateral cross-holdings. A notion of pairwise stability is applied to analyze firms' incentives for cross-holdings. Under certain conditions and Cournot competition on the output market, it is shown that monopoly is the only outcome of pairwise stable...